Consumer Protection Law Defends Oregon Collection Agency

In the previous time, if, for instance, you were an Oregonian consumer, with a number of poor credit card balances but were able to withstand until the statute of limitations passed, you were more or less sure of success. However, this may be an unethical way of managing poor debt.

Now, for the month of March, a few changes might have been made to those things.

There are three cases in Oregon that looks as if it indicates a means to a restored option to collect for collection agencies. After incurring credit card charges, delinquent credit card owners can be sued by debt collectors for a maximum of six years. This is in opposition to a preceding decree proposed that in order to be considered off the hook, as you might say, Oregonians had to wait for a maximum of three years.

This latest rule was brought about by three independent consumer cases, all concerning Chase Bank, which is based in Delaware. In Delaware, credit card debt is in a three-year statute of limitations, so when collection agencies purchased the delinquent accounts from Chase, the customers assumed they could sue due to their out-of-stat debts.

Nonetheless, the Court of Appeals in Oregon decided to sustain the six-year statute, despite the signed contract stating the three-year statute of Delaware would be standard.

The change can be seen in the fact that a third-party collection agency purchased the debt. As a result, it initiated a condition in the Fair Debt Collection Practices Act that hinders collectors from taking legal action from a long distance. The added condition also insists that consumers can be sued by collection agencies in the state in which the consumer lives in.

At the end of the day, it seems weird and appropriate at the same time that a protection law intended for consumers was utilized to defend the rights of a collection agency.

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